News Category: Recent Transactions

Chartwell is pleased to announce a majority sale of Superior Pump to Pedrollo Group S.p.A. The combination of these two entities presents an excellent opportunity for Pedrollo to penetrate the highly desirable North American water pump market with its newly-owned, well-established platform in Superior Pump. Chartwell served as the exclusive financial advisor to the Michel family and Superior Pump, providing comprehensive, unbiased counsel to the shareholders on the transaction.

Pedrollo is a family-owned, Italian-based pump manufacturer serving industrial and consumer markets in more than 160 countries worldwide. The Pedrollo multi-generational family business has prioritized the creation of sustainable water, energy, and technology solutions for its customers. In recent years, Pedrollo has been particularly acquisitive, with the prioritization of capturing both revenue and operational based synergies from numerous value-add acquisition targets.  This transaction is their first acquisition in North America.

Superior Pump is a producer and distributor of premium pumps designed for commercial and residential use. This multi-generational family business leverages strong and long-tenured manufacturing capabilities to deliver top-tier products for its wide array of North American-based customers. Management consistently maximizes its efforts to prioritize strategic resource allocation on new and existing customers, business development, and new product development. Coming from its long-standing history of family and entrepreneurial values, Superior Pump shares a similar vision and culture with its Italian-based counterpart, making it an optimal acquisition target for Pedrollo.

Pedrollo’s strategic ambition is to capture market share in North America and it sought out partnership with Superior Pump. Throughout an extensive search process, Pedrollo was intrigued by Superior Pump’s strong geographic footprint and excellent supplier relations. Through ensuing conversations with Superior Pump, it was clear that there are many complementary business aspects between these two companies.

Initial negotiations between the two entities began when Pedrollo approached the Michel family on an unsolicited basis to make a minority equity investment in Superior Pump. Through creative, solutions-based restructuring, Chartwell was able to negotiate with Pedrollo to progress from a minority to a majority equity purchase; allowing Charlie Michel (who will remain president of Superior Pump) to retain a minority equity interest. The negotiation and diligence processes were challenging on many fronts, including tariff expense and credits, working capital build-ups and draw-downs, and COVID-19 related anomalies. Pedrollo expects immediate synergies to be recognized in numerous business areas, including collaboration of design know-how, seamless integration of customer networks, and a more comprehensive product portfolio. The combined entity will now have an unparalleled reach into markets across the globe as it aims to leverage its robust manufacturing capabilities and distribution network. Pedrollo’s belief in Superior Pump is evidenced by the dedicated long-term capital commitment and is convinced it has found the right partner in Superior Pump.

“The Michel family is extremely pleased with this partnership as it positions Superior Pump for significant growth and expansion into new markets, fully backed by the support of Pedrollo. We highly value the strategic and tactical M&A advice that Chartwell provided in this transaction process. Chartwell carefully listened to our family objectives which were successfully structured and negotiated in our transaction with the Pedrollo family.”

— Charles (Chip) Michel Jr., Founder & Majority Owner, Superior Pump

“This is a significant milestone for Superior Pump as we aim to combine our world-class pumps with a supreme partner like Pedrollo. We are delighted to be a part of Pedrollo’s strategic expansion plan in North America and look forward to spearheading these strategic efforts. The Pedrollo platform presents excellent synergies and cross-selling opportunities for both companies. Chartwell provided invaluable advice and insights throughout the M&A process, navigating through a number of complex financial issues while also successfully coordinating and providing due diligence requirements and reports during these unprecedented times.”

— Charles (Charlie) Michel III, President, Superior Pump

About Superior Pump

Headquartered in Minneapolis, Minnesota, Superior Pump is a leading designer, manufacturer, and provider of high-quality water pumps sold to an extensive customer base including specialty retailers, wholesalers, distributors, and direct to consumer online. Consisting mainly of pumps, the Company’s wide product portfolio is tailored to incorporate numerous applications, spanning utility, sump, sewage, lawn and irrigation, pools, and more. Since 1932, the Michel family has established an extensive track record and unparalleled reputation in the plumbing industry.

“We are absolutely delighted to have the opportunity to represent the Michel family in this transformational transaction. It was clear from the beginning of discussions that this transaction would be extremely beneficial for both parties. With Superior Pump’s excellent manufacturing capabilities and comprehensive product portfolio, we knew this was the right opportunity for Superior and Pedrollo to maximize their operations into new international markets. Superior Pump’s North American sales and marketing capabilities will provide Pedrollo many strategic benefits in the years to come. We would like to also thank all of the transaction professionals, both on the Michel and Pedrollo side, for their professionalism, creativity, and responsiveness during these unprecedented times.”

— Greg Fresh, Managing Director, Chartwell

Chartwell Contact

For additional information on this transaction, please contact Greg Fresh.

Chartwell is pleased to announce the successful completion of a recapitalization transaction that funds the future growth of Salas O’Brien through national expansion via strategic mergers and organic growth initiatives. Chartwell acted as the exclusive financial advisor to Salas O’Brien throughout the transaction, providing comprehensive, unbiased counsel to the board of directors and management. Supporting the transaction and providing bank and non-bank capital to achieve Salas O’Brien’s goals were Umpqua Bank and Caltius Structured Capital.

Salas O’Brien is a leading engineering, facility planning, and commissioning firm addressing highly technical building and facility challenges. Founded in 1975, the firm provides mechanical, electrical, and structural engineering and related consulting to clients in a variety of industries. Salas O’Brien has been named an Inc. 5000 fastest growing company for eight consecutive years due to its consistent focus on high quality, long-term relationships.

“Salas O’Brien selected Chartwell as our financial advisor based on their reputation in capital markets and vast industry knowledge in engineering and consulting services. They were attentive to our needs and provided leadership with important, unbiased, and in-depth analyses at every step of this highly complex, multi-faceted transaction. We are simply delighted by the outcome and we highly appreciate our relationship with Chartwell.”

— Darin Anderson, CEO, Salas O’Brien

Chartwell Contact

For additional information on this transaction, please contact Greg Fresh.

Chartwell is pleased to announce that Spring Oaks Capital, LLC has received a structured capital investment, accelerating its establishment as the premier, technology-enabled consumer debt investment and collections platform in the industry.

Spring Oaks’ (the “Company”) substantial private investment, coupled with a $150 million senior secured revolving credit facility provided solely by Ares Global Management, LLC (“Ares”), will support the Company’s opportunistic portfolio acquisition strategy along with the continued development of industry leading technology tools. Further supporting the Company’s growth, Ares has included an incremental $100 million of capital, via an accordion, available for additional capital deployment. In partnering with the leading provider of credit solutions to the consumer finance sector, Spring Oaks is positioned to execute upon a robust pipeline of investment opportunities. Simultaneous with closing, Spring Oaks financed a meaningful investment in selected consumer finance assets, with continued acquisitions scheduled during the remainder of 2020.

Chartwell served as Spring Oaks’ exclusive financial advisor, providing strategic counsel to the Company as it evaluated its capital structure alternatives in pursuit of sustainable growth. The junior structured capital infusion will allow Spring Oaks to build a platform that empowers consumers on their journey to resolve the burden of financial debt through machine learning, behavioral science, and deep industry expertise. The Company now has the necessary capital to rapidly scale its portfolio acquisition platform, leveraging unmatched compliance procedures, best-in-class technology platform, and a team of long-standing industry executives. The investor’s belief in the Company is evidenced by the substantial capital commitment, through both the initial investment and significant monetary commitment in the future.

Spring Oaks Capital, LLC is an innovative and technology-focused consumer debt purchasing and collections platform spearheaded by some of the most credible and experienced executives in the industry. The Company leverages data-driven analytics, AI, and machine learning integration to enhance underwriting, purchasing, and collections, supported by industry-leading cloud-based tools. The Company maintains an unmatched compliance focus, ethically collecting portfolios with a team-based approach.

“Spring Oaks is extremely pleased with this investment outcome as it positions us for significant growth as we build the premier debt buyer in the industry. Our long-standing partnership with Chartwell has been instrumental in the early development of the Company, and we are grateful for their leadership of our capital raising process. We look forward to many years of continued partnership with their team.”

— Marcelo Aita, Executive Chairman, Spring Oaks Capital

“This is a significant milestone for Spring Oaks as we continue to build our leading portfolio acquisition platform and deepen our relationships with high quality financial institutions seeking a well-capitalized, technology-enabled partner to transition customer relationships. The Ares credit facility, along with our structured capital investor, positions us to be the buyer of choice for sellers seeking a long-term partner, ranging from leading-edge financial technology lenders to global banking institutions.”

— Tim Stapleford, President & CEO, Spring Oaks Capital

About Spring Oaks Capital

Spring Oaks Capital is a national financial technology company, focused on the acquisition of non-performing credit portfolios. The Company subscribes to an employee and consumer-centric operating philosophy that creates high-value jobs, a significant performance lift and highest standards of compliance. Spring Oaks’ business strategy is rooted in innovative data-driven technology to maximize collection results and a contact platform that offers multi-channel options to meet each consumer’s communication preference.

“The Spring Oaks team possesses unmatched experience and we are excited to be a trusted advisor to the Company. With a fulsome understanding of the Company’s objectives and a review of the capital alternatives available to support the Company’s initial growth, the preferred capital structure exceeded the initial investment expectations, with an ability to facilitate significant future investment over time. The selected institutional private investor also provides complimentary benefits to Spring Oaks’ technology strategy. We are excited to support Spring Oaks’ continued growth. Further, Spring Oaks is well-positioned for sustainable growth through its partnership with Ares, one of the world’s premier institutional credit platforms. We are incredibly excited to witness the Spring Oaks growth story over the next several years, and continue to build on our partnership with Marcelo Aita, Tim Stapleford, and the entire Spring Oaks team.”

— Will Bloom, Managing Director, Chartwell

Chartwell Contact

For additional information on this transaction, please contact Will Bloom. To learn more about Chartwell’s corporate finance capabilities, please contact Greg Fresh.

Chartwell is pleased to announce the sale of Copperhead Industries to Copperweld Group, a portfolio company of Kinderhook Industries and parent company of Copperweld Bimetallics and Seminole Wire & Cable. Chartwell acted as exclusive financial advisor to Copperhead (the “Company”) throughout the transaction, providing comprehensive, unbiased counsel to the shareholders on the sale of the Company.

Copperhead is a leading supplier of tracer wire and tracer wire accessories, serving a variety of public and private customers in the water, sewer, gas, and telecommunications markets. Copperhead’s unique Complete Utility Locating System™ makes detecting underground utilities more accurate and efficient. The Company is headquartered in Monticello, Minnesota.

After years of measured and profitable growth, the Copperhead shareholders believed that in order to accelerate future growth and capitalize on favorable construction trends in the Company’s key markets, Copperhead would benefit by finding the optimal partner to support its next chapter. The shareholders chose Copperweld Group to provide the economic and strategic resources necessary to further expand Copperhead’s product offerings and geographic footprint, thus facilitating continued growth and expansion of the business.

“After discussions with Copperweld continued to escalate, we knew we needed a financial advisor with M&A expertise in our corner. Chartwell was instrumental throughout each step of the process, providing in-depth analysis and unbiased guidance. Gathering due diligence information and preparing for conversations with Copperweld was enlightening and strategic in nature. Chartwell took the lead in evaluating the unsolicited offer and educating us on our options with strategic and private equity investors. They led the negotiation process with Copperweld in this fast-paced transaction that went from an initial conversation to closing in less than 90 days. I was especially impressed with Chartwell’s expertise and guidance and the superior outcome for our shareholders and employees. We are extremely excited about the future of Copperhead and Copperweld.”

— Jeff Atwood, President, Copperhead Industries

Chartwell Contact

For additional information on this transaction, please contact Joe Skorczewski. For more information about Chartwell’s corporate finance capabilities, please contact Wil Becker. 

Chartwell is pleased to announce the sale of Heneghan Wrecking & Excavating Co., Inc. to NorthStar Group Services, a portfolio company of J.F. Lehman & Company. Chartwell acted as exclusive M&A advisor to Heneghan (the “Company”‘) throughout the transaction, providing comprehensive, unbiased counsel to the shareholders on the sale of the Company.

Headquartered in Chicago, Illinois, Heneghan is a leading provider of complete structural and interior demolition, excavation, and emergency response services for commercial and industrial clients across the Midwest. Since 1973, Heneghan has established an extensive track record and unparalleled reputation as the preeminent demolition provider in the Midwest. Heneghan employs a highly experienced staff of estimators, project managers, operators, and laborers with numerous high-profile, highly technical projects successfully completed with an exemplary safety record.

“We chose Chartwell as our financial advisor due to their industry experience, reputation, and transaction expertise. Chartwell was instrumental throughout each step of the M&A process, providing in-depth analysis and unbiased guidance. They took the lead in soliciting and evaluating offers while educating us on our options with numerous strategic and private equity investors. We trusted Chartwell to guide us through a very meaningful transaction with our family-owned business and truly believe we achieved an optimal outcome for our family and our employees. We are extremely excited for our partnership with NorthStar and see many new opportunities to come.”

 – Patrick Heneghan, President, Heneghan Wrecking

About NorthStar Group Services

NorthStar is the leading provider of highly technical infrastructure and environmental services with unrivalled credentials executing highly complex projects across its core endmarkets. NorthStar’s complementary service lines include commercial and industrial deconstruction, nuclear deconstruction and decommissioning, environmental services, and response and restoration. NorthStar is headquartered in New York, New York with a broad branch network across the United States.

Chartwell Contact

For more information about this transaction, please contact Greg Fresh.

Chartwell is pleased to announce RESPEC, Inc. has acquired PDC Inc. Engineers. The transaction brings together two 100% ESOP-owned companies with over 110 years of industry experience and combined revenue of $80M. The collective company will continue to operate under the RESPEC banner.

RESPEC (the “Company”) engaged Chartwell as its exclusive financial advisor to lead and execute a complex transaction involving the combination of two 100% ESOP-owned companies and their respective plans. Throughout the process, Chartwell provided objective counsel and facilitated negotiations on behalf of the Company to ensure a successful outcome for both parties. Chartwell conducted in-depth analyses to advise RESPEC on investment merits, valuation, transaction structuring, and ESOP related matters.

“We are no strangers to the M&A process and I personally have interacted with many financial professionals throughout my career. We selected Chartwell to lead this important endeavor based on Chartwell’s ability to leverage its team of professionals to provide unbiased, comprehensive advice throughout the transaction process. Chartwell’s ability to navigate through a complex ESOP transaction during one of the more complex times in recent history was invaluable. It was comforting to know we had a reliable and responsive partner to help us cross the finish line.”

 – Todd Kenner, CEO, RESPEC

About RESPEC

Founded in 1969, RESPEC is a technical consulting and environmental services company specializing in the application of technology to solve complex business, scientific, and engineering problems. The Company is a global leader in geoscience, engineering, data, and integrated technology solutions for major industry sectors. Since 2011, RESPEC’s revenue has increased from $18 million to $56 million and its staff has grown from 140 to 340. The Company’s staff consists of engineers, geologists, scientists, inspectors, technicians, and specialty consultants with decades of engineering and construction experience. Headquartered in Rapid City, South Dakota, RESPEC has locations across the country and has completed projects around the world.

About PDC

Based in Fairbanks, Alaska, PDC has business interests dating back to 1953. PDC is a multi-disciplinary consulting and design company that provides services to the facilities, transportation, land development, and utilities markets. PDC serves a variety of industries with a portfolio of clients including federal, state, and local government entities as well as privately owned organizations. The firm specializes in designing for extreme environments, such as those found in the Arctic and Antarctic, and for military applications.

Chartwell Contact

For more information about this transaction, please contact Joe Skorczewski or Chris Staloch. To learn more about Chartwell’s corporate finance capabilities, please contact Wil Becker.

Chartwell is pleased to announce the sale of NOVA Geotechnical & Inspection Services to Obsidian Group Holdings, parent company of Universal Engineering Services and GFA International, Inc. Chartwell acted as exclusive financial advisor to NOVA (the “Company”) throughout the transaction providing comprehensive, unbiased counsel to the shareholders on the sale of the Company.

NOVA provides geotechnical engineering, environmental consulting, soils inspection and testing, construction materials testing, and special inspection services throughout Nevada and California. Founded in 2001, the Company has established itself as a market leader in a fragmented industry by providing consistent quality and deep expertise across a full spectrum of services, from project concept to post-construction. NOVA’s staff consists of engineers, geologists, scientists, inspectors, technicians, and specialty consultants with decades of engineering and construction experience. With substantial, proven knowledge and diversified technical expertise, the difference NOVA provides is continuous integrity. The Company is headquartered in Las Vegas, Nevada with additional offices in Reno, Nevada and Irvine, California.

The shareholders believed that in order to accelerate growth and capitalize on favorable construction trends in the Company’s key markets, NOVA needed to find the optimal partner to support its next chapter. NOVA’s shareholders chose Obsidian to provide both the economic and strategic resources necessary to further expand NOVA’s service offerings and geographic footprint, thus facilitating continued growth and expansion of the business.

“We chose Chartwell as our financial advisor due to their industry experience, reputation, and transaction expertise. Chartwell was instrumental throughout each step of the process, providing in-depth analysis and unbiased guidance. They took the lead in evaluating offers and educating us on our options with strategic and private equity investors. Chartwell led the negotiation process with Obsidian in this highly complex transaction. I was very impressed with Chartwell’s expertise and guidance and the superior outcome for our shareholders and employees. We are extremely excited about the future of NOVA and Obsidian.”

 – James Bristow, CEO, NOVA

About Obsidian Group Holdings

Obsidian is a network of engineering, inspection, and testing firms. Headquartered in West Palm Beach, Florida, Obsidian was formed in 2019 following the merger of Universal Engineering Sciences, LLC and GFA International, Inc. The combined company’s resources include 26 offices and over 1,300 professionals.

Chartwell Contact

For more information about this transaction, please contact Chris Staloch. To learn more about Chartwell’s corporate finance capabilities, please contact Wil Becker.

Chartwell is pleased to announce Mayville Engineering Company, Inc. in successfully executing an initial public offering (IPO). Chartwell served as financial advisor to Mayville (“MEC” or “the Company”) throughout the process, providing comprehensive counsel on ESOP related matters required to effectuate the offering. The Company successfully listed its shares on the New York Stock Exchange on May 9, 2019.

Having successfully operated MEC as a 100% ESOP-owned company since 1985, the Board of Directors began exploring potential strategic alternatives to address the Company’s increasing repurchase obligation and capital expenditure constraints. Chartwell’s initial involvement with Mayville began in 2018. Leveraging its extensive corporate finance expertise and ESOP knowledge, Chartwell conducted a thorough review of MEC’s capital and ownership structure to determine potential growth capital options for the Company. Chartwell presented its analyses to the Board of Directors which ultimately concluded growth capital via public equity markets was the optimal solution for the Company and, more importantly, its shareholders. Following Chartwell’s strategic alternatives review for the MEC Board of Directors, Chartwell was retained by the Company to advise it throughout the IPO process on all ESOP related matters.

“MEC selected Chartwell as our financial advisor because of their reputation and expertise in the ESOP marketplace. Throughout each step of the process, Chartwell provided valuable, in-depth analyses and guidance on a myriad of topics and considerations that allowed our Board of Directors and Executive team to make highly analyzed and informed decisions. Chartwell helped translate complex topics into clear and concise analyses that our Board could efficiently evaluate and endorse. Chartwell acted as a true partner on the deal with senior leadership throughout the process. We truly appreciate everything Chartwell has done during this process and ultimate transaction.”

 – Robert Kamphuis, Chairman, President, & CEO, MEC

“Chartwell’s advice and guidance have been instrumental to MEC over the past two years. The team is simply first class, both professionally and personally. Their deep knowledge and expertise in corporate finance and ESOP related transactions is unparalleled. Throughout each step of the process, Chartwell provided valuable, in-depth guidance on all growth capital alternatives available to MEC. With Chartwell’s guidance, this IPO will accomplish a wide range of stated objectives and MEC is thrilled with the outcomes achieved. MEC will continue to turn to Chartwell for all ESOP related and corporate finance matters as we continue building our nationally respected brand.”

 – Todd Butz, CFO, MEC

About Mayville Engineering Company

Founded in 1945, Mayville Engineering Company is a leading supply chain partner for blue-chip original equipment manufacturers. As a value-added manufacturer, MEC provides a broad range of prototyping and tooling, production fabrication, coating, assembly and aftermarket components. The Company’s customers operate in a diverse end-markets, including heavy-and medium-duty commercial vehicles, construction, powersports, agriculture, military and other industrial markets. Headquartered in Mayville, Wisconsin, MEC operates 21 facilities with almost three million square feet of manufacturing space.

Chartwell Contact

For additional information on this transaction, please contact Greg Fresh.